by Starbucks is revamping several of its stores in New York and Southern California as part of its new “Back to Starbucks” initiative, led by CEO Brian Niccol. The changes aim to create a more inviting and traditional coffeehouse atmosphere while addressing recent operational setbacks and sales declines.
Why It Matters
- Starbucks has faced challenges, including barista strikes, longer wait times, and a 7% global sales drop in Q4.
- New CEO Brian Niccol, who took over in September 2024, is leading the turnaround effort.
- The company’s share price jumped 18% following Niccol’s appointment, reflecting high investor expectations.
What to Know
- Remodel Focus: Stores in New York and Southern California are being redesigned with:
- Lounge-style seating
- Warmer lighting
- Locally inspired wall art
- Hardwood floors
- Cozy atmosphere to encourage in-store visits
- Revived Features:
- Return of ceramic mugs for some dine-in orders
- Self-service condiment bars reintroduced
- Baristas encouraged to engage more warmly with customers, including hand-written notes on cups
- Operational Improvements:
- Menu simplification and reduced customization options
- New order sequencing algorithm to reduce wait times
- At test locations, 75% of peak-hour orders were fulfilled in under 4 minutes
- Community Engagement:
- The company hosted 14,000 store leaders at the 2025 Leadership Experience in Las Vegas to align teams with the initiative’s goals
What Happens Next
- Starbucks plans to expand the redesign and service improvements to more locations in the coming months.
- The company hopes to reestablish itself as a “third place” — a welcoming space between home and work — while boosting customer satisfaction and in-store sales.
